Great DepressionGreat Depression

Chapter 26 – HIS 1302Chapter 26 – HIS 1302

Hundred DaysHundred Days

Stock market crashStock market crashHoover’s effectivenessHoover’s effectivenessElection of Franklin RooseveltElection of Franklin RooseveltFirst 100 days – legislationFirst 100 days – legislation ““Bank Holidays”Bank Holidays”

ExamplesExamplesFDICFDICForced separation of investment and Forced separation of investment and

commercial bankingcommercial bankingMore power for Federal Reserve BoardMore power for Federal Reserve BoardHome Owners Loan Corp.Home Owners Loan Corp.Regulated securities exchangeRegulated securities exchange

View on leadership – how to fix the View on leadership – how to fix the economy?economy?

Failures – Economy ActFailures – Economy Act

- First Priority – unemployment and - First Priority – unemployment and industrial stagnationindustrial stagnation

- Civilian Conservaton Corp- Civilian Conservaton Corp

- Formed by the NIRA - Formed by the NIRA

Government supervision of industryGovernment supervision of industry

NRA’s dutiesNRA’s dutiesBuilding codesBuilding codesFailed to end the DepressionFailed to end the DepressionControlled by businessmen?Controlled by businessmen?

Declared unconstitutionalDeclared unconstitutionalOpponents created a new union, which Opponents created a new union, which

competed with AFL, called the Congress competed with AFL, called the Congress of Industrial Organizations. Skilled and of Industrial Organizations. Skilled and unskilled.unskilled.

Another agency - PWAAnother agency - PWA

AAAAAA

Aimed at assisting farmersAimed at assisting farmersPaid farmers to produce lessPaid farmers to produce lessLarge scale farmers benefited, while small Large scale farmers benefited, while small

farmers suffered.farmers suffered.

Tennessee Valley AuthorityTennessee Valley Authority

Power plants, transmission lines for Power plants, transmission lines for electricity, and market electricity to electricity, and market electricity to individuals and communitiesindividuals and communities

Providing standard to evaluating rates and Providing standard to evaluating rates and efficiency of private companiesefficiency of private companies

Flood control, soil conservation, Flood control, soil conservation, reforestationreforestation

Successes and limitationsSuccesses and limitations

New Deal SpiritNew Deal Spirit

FDR set the toneFDR set the tone OptimisticOptimistic Reception to new ideasReception to new ideas Increased intellectuals and professionals in Increased intellectuals and professionals in

governmentgovernment Drew on Populism, TR’s New Nationalism, and Drew on Populism, TR’s New Nationalism, and

Wilson’s New FreedomWilson’s New Freedom

Washington was battlefield for special interests Washington was battlefield for special interests – “Interest group democracy”– “Interest group democracy”

Slighted the unorganized majoritySlighted the unorganized majority

UnemployedUnemployed

1934 – 9 million 1934 – 9 million Democrat majority grew in CongressDemocrat majority grew in CongressFederal Emergency Relief AdministrationFederal Emergency Relief Administration

Hopkins – jobs, not handoutsHopkins – jobs, not handoutsCivil Works AdministrationCivil Works Administration

Public works projectsPublic works projectsCost prohibitive, so cancelled.Cost prohibitive, so cancelled.

Works Progress AdministrationWorks Progress AdministrationContinued work of CWAContinued work of CWAEmployed writers, artists, etc. (Federal Project Employed writers, artists, etc. (Federal Project

#1)#1)Unemployment remained highUnemployment remained highDeficit spending – concerns? Indications?Deficit spending – concerns? Indications?

Literature of the DepressionLiterature of the Depression

John Dos Passos – John Dos Passos – USAUSA; anti-capitalistic ; anti-capitalistic and pessimistic trilogyand pessimistic trilogy

John Steinbeck – John Steinbeck – The Grapes of WrathThe Grapes of WrathThomas Wolfe – stark and vivid view of Thomas Wolfe – stark and vivid view of

the confusion of urban life and hard timesthe confusion of urban life and hard timesWilliam Faulkner – southern poverty, William Faulkner – southern poverty,

pride, and race conflict pride, and race conflict

ExtremistsExtremists

FDR’s position won him critics left &rightFDR’s position won him critics left &rightLong – Share our wealth plan; Long – Share our wealth plan;

redistribution of wealthredistribution of wealthCoughlin – urged currency inflation and Coughlin – urged currency inflation and

attacked Administration (communists and attacked Administration (communists and Jews?)Jews?)Closely resembled fascismClosely resembled fascism

Townsend – old age pensions; suggested Townsend – old age pensions; suggested “Social Security” system. Adopted by FDR“Social Security” system. Adopted by FDR

Criticisms and continuation of Depression Criticisms and continuation of Depression led to the 2led to the 2ndnd New Deal launched spring New Deal launched spring 19351935

Wagner Act = laborWagner Act = laborSocial Security Act = old age pensionsSocial Security Act = old age pensionsRural Electric AdministrationRural Electric AdministrationWealth Tax raised taxes on large incomes, Wealth Tax raised taxes on large incomes,

estates, giftsestates, gifts

New Deal ConcernsNew Deal Concerns

Restricted liberty?Restricted liberty?High cost of deficit spending? John High cost of deficit spending? John

KeynesKeynes

Election of 1936Election of 1936

FDR won again, and democrats made FDR won again, and democrats made large gains in several elections.large gains in several elections.

New support from 2New support from 2ndnd New Deal New DealNew voting pattern among BlacksNew voting pattern among Blacks

Supreme Court WranglingSupreme Court Wrangling

Majority was conservativeMajority was conservativeBy 1937, New Deal programs seemed By 1937, New Deal programs seemed

doomed.doomed.FDR tried to raise # of sitting judges, FDR tried to raise # of sitting judges,

attempt to “stack” the court in his favorattempt to “stack” the court in his favorHigh opposition; “Dictator” Roosevelt?High opposition; “Dictator” Roosevelt?Violation of checks and balancesViolation of checks and balancesWithdrew plan with pressureWithdrew plan with pressure

Even so, several judges changed their Even so, several judges changed their opinions to protect the courtopinions to protect the court

Eventual death and retirement allowed Eventual death and retirement allowed FDR to gain a majority opinionFDR to gain a majority opinion

FDR’s personal prestige and power FDR’s personal prestige and power sufferedsuffered

New Deal Winds DownNew Deal Winds Down

““Court Packing” plan ends the New DealCourt Packing” plan ends the New DealStrikes in 1937Strikes in 1937June 1937, reduction in gov’t spendingJune 1937, reduction in gov’t spending ““Roosevelt Recession” – slide downward Roosevelt Recession” – slide downward

of the economyof the economyFDR increased deficit spending – new FDR increased deficit spending – new

public works bill, new AAA programs, Fair public works bill, new AAA programs, Fair Labor Standards ActLabor Standards Act

Did little to ease recession; alienated Did little to ease recession; alienated conservativesconservatives

1938 – coalition of Republicans and 1938 – coalition of Republicans and conservative Democrats ended New Deal conservative Democrats ended New Deal legislationlegislation

SignificanceSignificance

Outbreak of WWII ended depressionOutbreak of WWII ended depressionNew Deal eased suffering but did not New Deal eased suffering but did not

revive the economyrevive the economyFDR’s willingness at different approaches? FDR’s willingness at different approaches?

No one knew what to do. No one knew what to do.Still, his policies were often Still, his policies were often

counterproductivecounterproductive

Result of New Deal – government Result of New Deal – government became a guarantor of public welfarebecame a guarantor of public welfare

Expanded bureaucracy and power of Expanded bureaucracy and power of presidencypresidency

Federal bureaus regulate private sectorsFederal bureaus regulate private sectorsChanged American life and societyChanged American life and society

Women and the New DealWomen and the New Deal Increased placement of women in high Increased placement of women in high

positionspositionsSec. of Labor Frances Perkins – 1Sec. of Labor Frances Perkins – 1stst

woman on cabinetwoman on cabinetMolly Dewson & Eleanor Roosevelt – Molly Dewson & Eleanor Roosevelt –

worked to place reform minded women in worked to place reform minded women in government (Civil Rights)government (Civil Rights)

IndiansIndians

New policiesNew policiesRevoked Dawes Act – return to traditional Revoked Dawes Act – return to traditional

culturesculturesAttempted to improve economic and living Attempted to improve economic and living

conditionsconditions Indian Reorganization Act – tribal gov’ts Indian Reorganization Act – tribal gov’ts

and ownership of land.and ownership of land.Criticisms – segregationist, traditionalist; Criticisms – segregationist, traditionalist;

some Indians opposed Colliersome Indians opposed Collier

Role of RooseveltRole of Roosevelt

Credit for New Deal policies? DebatableCredit for New Deal policies? DebatableLeft up to othersLeft up to othersHis personality guided New DealHis personality guided New DealGreatest ability in forming coalitionsGreatest ability in forming coalitionsPersonified the government to people.Personified the government to people.

Triumph of IsolationismTriumph of Isolationism

FDR was internationalist; still, US was FDR was internationalist; still, US was most importantmost important

Isolationism increases in 1930sIsolationism increases in 1930sNye Committee discouraged foreign Nye Committee discouraged foreign

involvementinvolvementNeurality ActsNeurality ActsFDR’s control of foreign policy slippedFDR’s control of foreign policy slipped

War Again in EuropeWar Again in Europe

German, Italy, Japan – aggressionGerman, Italy, Japan – aggressionNeutrality Acts; FDR veiled statementsNeutrality Acts; FDR veiled statementsPoland leads to “Cash and Carry”Poland leads to “Cash and Carry”1939 – FDR sells arms to Britain & France 1939 – FDR sells arms to Britain & France

– not authorized.– not authorized.Manhattan ProjectManhattan ProjectDestroyers for Bases dealDestroyers for Bases dealSept 1940 – 1Sept 1940 – 1stst Peacetime draft Peacetime draft

33rdrd Term Term

UnprecedentedUnprecedentedPartisan politics and belief he could control Partisan politics and belief he could control

isolationists = decision to runisolationists = decision to runEuropean situation also influencedEuropean situation also influencedCampaign issue – foreign policyCampaign issue – foreign policy

Undeclared WarUndeclared War

FDR’s victory meant more aid to BritainFDR’s victory meant more aid to BritainLend-Lease ActLend-Lease ActAmerican Navy & British NavyAmerican Navy & British NavyGreer Incident/Reuben James led to Greer Incident/Reuben James led to

unofficial steps toward war!unofficial steps toward war!